nidena
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Post by nidena on Jun 10, 2022 10:25:32 GMT -5
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scgal
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Post by scgal on Jun 10, 2022 13:05:33 GMT -5
What harm did Trump do to student loan borrowers and how did this specifically address it if there was.
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gs11rmb
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Post by gs11rmb on Jun 10, 2022 13:21:38 GMT -5
What harm did Trump do to student loan borrowers and how did this specifically address it if there was. I'm guessing it's actually referring to Betsy DeVos and the repeated rejection of eligible loan forgiveness applications.
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teen persuasion
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Post by teen persuasion on Jun 10, 2022 13:23:32 GMT -5
What harm did Trump do to student loan borrowers and how did this specifically address it if there was. The article mentions how the Trump administration (and his appointee, Betsy DeVos) dealt with loan borrowers from these for-profit colleges that closed, leaving the students without a degree:
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Ava
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Post by Ava on Jun 12, 2022 14:20:12 GMT -5
By what I've seen, we'll have to wait until late Summer to find out about what'll happen to our student loans. No imminent decision is expected until then. We'll have to be patient.
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nidena
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Post by nidena on Jun 22, 2022 10:23:53 GMT -5
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nidena
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Post by nidena on Jun 22, 2022 19:09:09 GMT -5
I've been thinking about this. I've seen the news stories talk about $10,000 and others talk about $50,000 but I can't help but wonder this:
Cancel the oldest $10,000 principal AND associated interest and fees accrued.
That would easily knock out a huge portion of many peoples SLs.
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haapai
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Post by haapai on Jun 22, 2022 19:34:26 GMT -5
That's a lovely thought but we're dealing with bureaucrats that cannot accurately count the number of on-time payments a borrower in an IDR program has made. Asking them to determine how much of a consolidation loan is due to the oldest loans is totally beyond them.
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nidena
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Post by nidena on Jun 23, 2022 17:29:36 GMT -5
Biden administration agrees to cancel another $6 billion in student loan debt for defrauded borrowersThe Biden administration has agreed to cancel an estimated $6 billion in federal student loan debt for about 200,000 borrowers who have claimed they were defrauded by their college.
About 200,000 borrowers will automatically get full debt relief -- no longer than one year after the date the agreement formally goes into effect, according to the proposed settlement agreement. Those eligible borrowers went to one of dozens of schools that the department has already determined engaged in misconduct that justifies debt relief, including The Art Institute, ITT Tech and Westwood College. A GUIDE TO THE PROPOSED SWEET SETTLEMENT
There are more than a hundred schools on the list above.
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haapai
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Post by haapai on Jun 23, 2022 18:01:23 GMT -5
I'm familiar with some of the names of the schools on this list. One of the temp agencies that I briefly got involved with was pushing me toward programs offered by one of them. Other schools on the list sent me pitches. I'm so glad that I ghosted the temp agency and never responded to the other pitches. I could have been talked into something that would have had very bad effects on the next two decades of my life.
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nidena
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Post by nidena on Aug 17, 2022 9:01:39 GMT -5
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Ava
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Post by Ava on Aug 21, 2022 17:34:30 GMT -5
Miguel Cardona said today that a decision will be forthcoming next week. Well, cannot go much longer since we're already past mid August.
Reading the tea leaves, I would say there's another extension coming, since they asked loan services not to send notices to borrowers. Forgiveness is a different matter, but my gut feeling is they wont offer any broad forgiveness at the moment.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Aug 21, 2022 18:26:02 GMT -5
Miguel Cardona said today that a decision will be forthcoming next week. Well, cannot go much longer since we're already past mid August. Reading the tea leaves, I would say there's another extension coming, since they asked loan services not to send notices to borrowers. Forgiveness is a different matter, but my gut feeling is they wont offer any broad forgiveness at the moment. they are so stringing this along. No matter what they do, it won't make this ok, imo. Regarding the forgiveness. Clariying this: Just the lack of focus, communication, goals, etc. Just a scramble and confusion. For 2+ years. Not a good look. for the pauses and 0% - keep it coming, says I!
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teen persuasion
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Post by teen persuasion on Aug 21, 2022 20:24:47 GMT -5
They won't restart loan payments before election day - that would be political suicide.
But they can't keep kicking the can down the road - they need to decide what they are doing, and start. There will be a lot of wailing and teeth gnashing if loans are not forgiven, but I can't see it happening blanket forgive-all. They need to do something about college costs going forward, or it's pointless and confusing.
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Ava
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Post by Ava on Aug 22, 2022 7:55:59 GMT -5
Oh, I agree. It's a $$hit$$how. The lack of transparency, information, bringing borrowers closer and closer to the cliff each time, etc.
I don't know what's worse, that they haven't made a decision yet (after 2 1/2 years) or that they have made a decision and are now deliberately withholding information until the last moment, playing with the financial and emotional wellbeing of 40 million people.
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happytraveler
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Post by happytraveler on Aug 22, 2022 11:37:48 GMT -5
Miguel Cardona said today that a decision will be forthcoming next week. Well, cannot go much longer since we're already past mid August. Reading the tea leaves, I would say there's another extension coming, since they asked loan services not to send notices to borrowers. Forgiveness is a different matter, but my gut feeling is they wont offer any broad forgiveness at the moment. they are so stringing this along. No matter what they do, it won't make this ok, imo. Regarding the forgiveness. Clariying this: Just the lack of focus, communication, goals, etc. Just a scramble and confusion. For 2+ years. Not a good look. for the pauses and 0% - keep it coming, says I! I can't think of a worse policy than to continually delay, defer, or forgive student loans. It is a slap in the face to people who didn't go to college/grad school, to those who took loans out and paid them off, and those who funded their education through other means. (including going to less expensive schools). Forgiving these loans is basically a bribe by the (mostly) Democrats who support this policy as means to secure future political support. If you borrow money, you should have to pay it back...not make the the guy down the street pay for it who had absolutely nothing to do with your taking out a loan.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Aug 22, 2022 14:39:20 GMT -5
they are so stringing this along. No matter what they do, it won't make this ok, imo. Regarding the forgiveness. Clariying this: Just the lack of focus, communication, goals, etc. Just a scramble and confusion. For 2+ years. Not a good look. for the pauses and 0% - keep it coming, says I! I can't think of a worse policy than to continually delay, defer, or forgive student loans. It is a slap in the face to people who didn't go to college/grad school, to those who took loans out and paid them off, and those who funded their education through other means. (including going to less expensive schools). Forgiving these loans is basically a bribe by the (mostly) Democrats who support this policy as means to secure future political support. If you borrow money, you should have to pay it back...not make the the guy down the street pay for it who had absolutely nothing to do with your taking out a loan. the problem is servicing student loans grew into a very profitable enterprise. The origination fees and interest rates were higher than mortgages, and non-dischargeable in bankrupcy. So it was win-win-win for the loaners, and lose-lose-lose for the borrowers. The cost of an education has inflated astronimically - the guy down the street is pay more for health insurance and medical care, dental care, legal services, and a lot of other stuff because of the high cost to educate those providers, who typically shoulder very high student loan balances with substantial interest rates. Unfortunately, the guy down the street is typically too stupid to realize how that all works. Unfortunately, even if all student loans were wiped out tomorrow a lot of these fees likely won't come down as they have become standard and customary. Would take some time for them to be impacted. If these loans are non-dischargeable, the terms should be nominal. If we want an educated population, with reasonably priced services, the terms should be nominal. It should not have morphed into a huge profitabe industry. No need to forgive the loans, just credit back all the fees and interest and that would be fine in my book. Going forward, terms should be nominal, just enough to fund the program and get the money back to fund the next cohort. Overall college cost should also be addressed, but that is a whole nuther ball of wax.
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happytraveler
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Post by happytraveler on Aug 22, 2022 16:39:16 GMT -5
the problem is servicing student loans grew into a very profitable enterprise. The origination fees and interest rates were higher than mortgages, and non-dischargeable in bankrupcy. So it was win-win-win for the loaners, and lose-lose-lose for the borrowers. The cost of an education has inflated astronimically - the guy down the street is pay more for health insurance and medical care, dental care, legal services, and a lot of other stuff because of the high cost to educate those providers, who typically shoulder very high student loan balances with substantial interest rates. Unfortunately, the guy down the street is typically too stupid to realize how that all works. Unfortunately, even if all student loans were wiped out tomorrow a lot of these fees likely won't come down as they have become standard and customary. Would take some time for them to be impacted. If these loans are non-dischargeable, the terms should be nominal. If we want an educated population, with reasonably priced services, the terms should be nominal. It should not have morphed into a huge profitabe industry. No need to forgive the loans, just credit back all the fees and interest and that would be fine in my book. Going forward, terms should be nominal, just enough to fund the program and get the money back to fund the next cohort. Overall college cost should also be addressed, but that is a whole nuther ball of wax. I see this very simply. If you borrow the money on agreed upon terms in a legally binding manner, you should be obligated to repay the loan consistent with those terms. I understand people may have regretted agreeing to those terms. I understand people may be dealing with significant financial hardship because they signed these notes. It is an absolute insult to the people who met their loan commitments, and to the people who did not go to college/grad school to make them pay for these student loans. The fact that a bunch of people made bad financial decisions is not everyone's problem. It is the debtors' probelm.
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nidena
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Post by nidena on Aug 23, 2022 9:29:21 GMT -5
The Aging Student Debtors of AmericaOf the forty-five million Americans who hold student debt, one in five are over fifty years old. Between 2004 and 2018, student-loan balances for borrowers over fifty increased by five hundred and twelve per cent.
For aging borrowers on declining incomes, the crisis is acute: student debtors over sixty-five default at the highest rates. In 2015, more than a third of borrowers in their age group defaulted on their educational loans.
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bean29
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Post by bean29 on Aug 23, 2022 9:40:15 GMT -5
The Aging Student Debtors of AmericaOf the forty-five million Americans who hold student debt, one in five are over fifty years old. Between 2004 and 2018, student-loan balances for borrowers over fifty increased by five hundred and twelve per cent.
For aging borrowers on declining incomes, the crisis is acute: student debtors over sixty-five default at the highest rates. In 2015, more than a third of borrowers in their age group defaulted on their educational loans. I wonder if this refers to money borrowed for their own Education, or if it is Parent Plus loan $$?
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TheOtherMe
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Post by TheOtherMe on Aug 23, 2022 9:52:51 GMT -5
I don't have as much of a problem forgiving student loans for people who went to college straight from high school and really didn't know what they were getting in to or understand the cost. I don't think 100% of the loans should be forgiven.
For older people (say over 35 for an example), they should be able to understand the paperwork for the loans they received and should have to pay them back.
Same for Parent Plus loans. The parents should be able to understand what they signed.
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Post by minnesotapaintlady on Aug 23, 2022 9:57:48 GMT -5
The Aging Student Debtors of AmericaOf the forty-five million Americans who hold student debt, one in five are over fifty years old. Between 2004 and 2018, student-loan balances for borrowers over fifty increased by five hundred and twelve per cent.
For aging borrowers on declining incomes, the crisis is acute: student debtors over sixty-five default at the highest rates. In 2015, more than a third of borrowers in their age group defaulted on their educational loans. I wonder if this refers to money borrowed for their own Education, or if it is Parent Plus loan $$? I'll bet a lot is PP loans. That has gotten HUGE lately. I'm in a couple college financing groups and there are a lot of parents using them. Many with the intention of handing them over to the kids to pay (and hoping that they do).
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haapai
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Post by haapai on Aug 23, 2022 10:18:05 GMT -5
I wonder if this refers to money borrowed for their own Education, or if it is Parent Plus loan $$? I'll bet a lot is PP loans. That has gotten HUGE lately. I'm in a couple college financing groups and there are a lot of parents using them. Many with the intention of handing them over to the kids to pay (and hoping that they do). According to the article only one third of the older borrowers have gotten involved with PP loans. Note that this is one third of the borrowers, not one third of the balance.
The article makes it sound that the majority of the over-65s that have student loans borrowed for their own education, lost control of the debt, and are really hurting now. Since most of those debts, taken out for their own education are older than most PP loans (even when the borrowers were over 40 when they borrowed for their own education) they've had much more time to compound and get out of control.
OTOH, it might just be a matter of time before Parent Plus loans come to dominate the student loan debts of the over-65 set. I'm pretty sure that trap is set.
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nidena
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Post by nidena on Aug 23, 2022 10:29:42 GMT -5
The Aging Student Debtors of AmericaOf the forty-five million Americans who hold student debt, one in five are over fifty years old. Between 2004 and 2018, student-loan balances for borrowers over fifty increased by five hundred and twelve per cent.
For aging borrowers on declining incomes, the crisis is acute: student debtors over sixty-five default at the highest rates. In 2015, more than a third of borrowers in their age group defaulted on their educational loans. I wonder if this refers to money borrowed for their own Education, or if it is Parent Plus loan $$? It addresses both situations in the article.
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raeoflyte
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Post by raeoflyte on Aug 23, 2022 10:32:23 GMT -5
Student loans have become predatory. The private loans always were. Government ones have good intentions, but need a complete overhaul.
We can blame the borrowers. That's the easiest path and there is always personal responsibility / a poor choice in play when something goes wrong. But who has the most responsibility? The singular borrower who is playing the game the way society encourages? Or the corporate entity making money off of thousands of singular borrowers?
Interest rates on student loans are way too high. Servicing of them has been a shit show. If you can only get out of a loan by dying, there better be some clear options for what options are available when plan a flounders.
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Ava
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Post by Ava on Aug 23, 2022 10:44:44 GMT -5
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azucena
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Post by azucena on Aug 23, 2022 11:09:05 GMT -5
I'd like to see regulation of origination fees and interest rate caps. A balanced forgiveness plan would be to forgive the interest owed so borrowers only owe original balances. I think there should be more subsidized loans available.
On the other side of the coin, college costs need to come down. Seems like the next wave is for so many professional jobs to require a masters or more.
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Post by minnesotapaintlady on Aug 23, 2022 11:33:41 GMT -5
I'd like to see regulation of origination fees and interest rate caps. A balanced forgiveness plan would be to forgive the interest owed so borrowers only owe original balances. I think there should be more subsidized loans available. On the other side of the coin, college costs need to come down. Seems like the next wave is for so many professional jobs to require a masters or more. While student loan forgiveness is a nice gesture for those currently in debt, it really doesn't address the problem. If they don't do something else going forward there will just be another round of students in the same situation coming up behind them.
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raeoflyte
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Post by raeoflyte on Aug 23, 2022 12:02:33 GMT -5
I'd like to see regulation of origination fees and interest rate caps. A balanced forgiveness plan would be to forgive the interest owed so borrowers only owe original balances. I think there should be more subsidized loans available. On the other side of the coin, college costs need to come down. Seems like the next wave is for so many professional jobs to require a masters or more. Agreed. I also feel like we need to reign in what jobs need a bachelor's and masters. I don't know how to do that, but realistically a lot of jobs do not need them.
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tskeeter
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Post by tskeeter on Aug 23, 2022 23:54:43 GMT -5
Student loans have become predatory. The private loans always were. Government ones have good intentions, but need a complete overhaul. We can blame the borrowers. That's the easiest path and there is always personal responsibility / a poor choice in play when something goes wrong. But who has the most responsibility? The singular borrower who is playing the game the way society encourages? Or the corporate entity making money off of thousands of singular borrowers? Interest rates on student loans are way too high. Servicing of them has been a shit show. If you can only get out of a loan by dying, there better be some clear options for what options are available when plan a flounders. Indemnifying education lenders (not discharging education loans during bankruptcy) made it possible for lenders to make loans without regard to whether or not the education received will generate enough income to pay off the loan. The result is inexperienced young people who borrow $125,000 or $150,000 for a degree that that qualifies them for a $12,000 a year job. Hell, the lenders know that degrees in Fine Arts, Education, Social Work or the like can’t support massive student loan payments. But they still make the loans. Because they can make lots of money from interest, fees, and penalties on delinquent loans. And the borrowers can never get out from under the loans. The fees and penalties go on until the borrower dies. Borrowers with oversized loans are literally fee’d and penalty’d to death. If education lenders were accountable for being sure that borrowers will be able to repay student loans, like lenders are responsible to ensure that borrowers can repay car loans or mortgages, education lenders would not lend hundreds of thousands of dollars to students pursuing degrees in Interdisciplinary Studies or Buggy Whip Making.
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